11 SOCIAL SECURITY

11 SOCIAL SECURITY - SECTION 11: SOCIAL SECURITY SOCIAL...

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SECTION 11: SOCIAL SECURITY SOCIAL SECURITY SYSTEM EMPLOYER PAYS 6.2% OF WAGES AND SALARY INTO SS FUND EMPLOYEE PAYS 6.2% OF WAGE AND SALARY EARNINGS TO SS FUND TOTAL = 12.4% OF WAGES AND SALARIES UP TO MAX EARNINGS OF $90,000 IF SELF EMPLOYED, WORKER PAYS ENTIRE 12.4% OF PROFITS CALLED THE PAYROLL TAX SOCIAL SECURITY TAXES ARE NOT PAID ON INTEREST INCOME, DIVIDENDS, CAPITAL GAINS, ROYALTIES NO DEDUCTIONS OR PERSONAL EXEMPTIONS TAX TAKES SAME PROPORTION OF INCOME FROM ALL WORKERS 6.2% IF EMPLOYEE, 12.4% IF SELF EMPLOYED THIS IS AN EXAMPLE OF A FLAT TAX TAX RATE IS THE SAME FOR ALL WORKERS (AS LONG AS INCOME DOES NOT EXCEED $90,000)
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SOCIAL SECURITY BENEFITS RETIREES CAN BEGIN RECEIVING REDUCED BENEFITS AT AGE 62 OR RETIREES CAN BEGIN RECEIVING FULL BENEFITS AT AGE 66 (AGE 67 IF BORN AFTER 1960) CURRENT CONTRIBUTIONS INTO THE FUND ARE USED TO PAY BENEFITS TO CURRENT RETIREES CURRENTLY THERE ARE ABOUT THREE WORKERS FOR EVERY RETIREE CURRENTLY THERE ARE MORE CONTRIBUTIONS INTO THE FUND THAN BENEFITS
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This note was uploaded on 04/07/2008 for the course ECON 0110 taught by Professor Kenkel during the Spring '08 term at Pittsburgh.

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11 SOCIAL SECURITY - SECTION 11: SOCIAL SECURITY SOCIAL...

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